Do dealers negotiate on Certified Pre Owned?
08-05-18, 02:58 PM
#1
Driver School Candidate
Thread Starter
Do dealers negotiate on Certified Pre Owned?
My salesman said that he could take an offer on a new RX450H to his manager but CPO prices were set. Is this normal or did he just want to sell me a new car?
Last edited by byadg; 08-05-18 at 03:15 PM.
08-05-18, 03:39 PM
#2
Lexus Champion
Official CPO is backed by Lexus head office not local dealer. Local dealer works on it, claim the cost to Lexus.
08-05-18, 03:56 PM
#3
Lead Lap
Yes, dealers will negotiate the prices for CPO vehicles, but the amount that is negotiable tends to be only a fraction of what it would be on a new vehicle.
With new vehicles, every dealer has access to pretty much the same cars. So, to be competitive, dealers have to be willing to negotiate.
The same is not true with CPO vehicles, and that is especially true with 1 and 2 year old CPO vehicles. If you find a CPO vehicle with the options and packages that you want, with the color you want, etc. at one dealership, you are not likely to find an identical or even similar vehicle at another dealer in the same geographic area. The supply of 1 and 2 year old CPO vehicles is small because not many have yet come back to dealers as trade-ins or lease returns. At the same time, the demand for those 1 and 2 year old CPO dealers is high because there are many buyers who don't realize how much discounting is available on new vehicles and who think that they are buying an "almost new" car at a significant savings. The result of low supply and high demand is that dealers can price those 1 and 2 year old CPO vehicles very high, and they can be open only to minimal negotiations. I've seen 1 year old CPO vehicles that are priced at very close to the same level for which you could buy a current year brand new car, which is what, to me, makes those 1 and 2 year old CPO vehicles among the poorest buys available in the auto market.
With new vehicles, every dealer has access to pretty much the same cars. So, to be competitive, dealers have to be willing to negotiate.
The same is not true with CPO vehicles, and that is especially true with 1 and 2 year old CPO vehicles. If you find a CPO vehicle with the options and packages that you want, with the color you want, etc. at one dealership, you are not likely to find an identical or even similar vehicle at another dealer in the same geographic area. The supply of 1 and 2 year old CPO vehicles is small because not many have yet come back to dealers as trade-ins or lease returns. At the same time, the demand for those 1 and 2 year old CPO dealers is high because there are many buyers who don't realize how much discounting is available on new vehicles and who think that they are buying an "almost new" car at a significant savings. The result of low supply and high demand is that dealers can price those 1 and 2 year old CPO vehicles very high, and they can be open only to minimal negotiations. I've seen 1 year old CPO vehicles that are priced at very close to the same level for which you could buy a current year brand new car, which is what, to me, makes those 1 and 2 year old CPO vehicles among the poorest buys available in the auto market.
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cp2012 (08-11-18)
08-05-18, 09:18 PM
#4
Driver School Candidate
Thread Starter
08-06-18, 03:49 AM
#6
Pole Position
I bought a new 2017 ES300h last September and based on knowledge gained on this forum (thanks) went in and offered 10% off and they accepted the offer. This June went to same dealer and made an offer on a CPO 2017 RX450h that had 12,000 miles and looked perfect. My offer was based on the original MSRP minus 10% minus the fact that it was one year old with 12,000 miles so another 8% or a total of 18% off the original MSRP. They accepted and yes I got another one year and unlimited mile warranty. Probably could have bargained down a little more but both were the colors and options we wanted. Very very happy with both today.
Last edited by Freds430; 08-06-18 at 07:45 AM.
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cp2012 (08-11-18)
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08-13-18, 01:18 PM
#10
The internet has made the entire transaction very transparent. What used to be a pie-in-the-sky asking
price that made "the deal" an important element of the discussion has become so easy to compare that
price "negotiating" does not sell cars. You already selected based on features/options/mileage/price before
you called/e-mailed/texted. Should you ask for a better price? Absolutely. Should you expect to buy the
car the way our Dads did it, hike around with a paper under your arm and spend more time at the desk
than the test drive? Never again.
price that made "the deal" an important element of the discussion has become so easy to compare that
price "negotiating" does not sell cars. You already selected based on features/options/mileage/price before
you called/e-mailed/texted. Should you ask for a better price? Absolutely. Should you expect to buy the
car the way our Dads did it, hike around with a paper under your arm and spend more time at the desk
than the test drive? Never again.
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